Christine Bader responds to new National Labor Relations Board ruling

Christine-BaderWriting for the Harvard Business Review, Nonresident Senior Fellow Christine Bader examines the NLRB’s decision that fast food giant McDonald’s could be held jointly liable for labor and wage violations by its franchise operators.

McDonald’s should apply to franchisees a model similar to the one it uses for its suppliers: The company engages in long-term relationships with suppliers to make it clear that they’ll work together on tough issues, not just issue fines; brings suppliers together periodically to learn from each other; and rewards innovation. A combination of internal staff and independent auditors ensures compliance and supports these efforts.